Since 1990, China's stock market has undergone a journey from non-existence to existence, and from weakness to strength. However, corresponding to this growth is the loss and disappointment of countless retail investors. People often ask, how to make a profit in the Chinese stock market? This article will take the experience of a retail investor as a clue to explore the path of enlightenment from loss to profit.

In the early years of China's stock market, policies and regulations were not yet perfect, and the market fluctuated greatly. Many retail investors suffered heavy losses due to blindly following the trend and coveting huge profits. Taking a retail investor named Mr. Zhang as an example, he invested all his savings in the early stage of the stock market, hoping to get rich overnight. However, due to a lack of investment knowledge and blindly listening to rumors, he quickly lost his principal.

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But Mr. Zhang did not give up. He began to reflect on himself, actively learn investment knowledge, and study the inherent laws of the stock market. He no longer blindly followed others' advice, but started to think independently, formulate investment strategies based on his own financial situation and risk tolerance. He no longer pursued getting rich overnight, but focused on long-term stable investment returns.

In this process, Mr. Zhang gradually realized the essence of investing in the stock market - rationality, patience, and long-term investment. He found that the idea of getting rich overnight in the stock market is dangerous, while long-term stable investment can bring considerable returns. He began to invest in index funds regularly, pay attention to diversified investment to reduce risk, and maintain keen observation of the market and flexible adjustment.

After several years of effort, Mr. Zhang's investment began to show results. The return rate of his investment portfolio stabilized at around 10%, which is not a huge profit, but enough to surpass the returns of most short-term investors. More importantly, he is fully confident and patient about this, and is full of hope for the future.

The inspiration Mr. Zhang's story brings us is:

Investment requires rationality. In the Chinese stock market, many retail investors are often influenced by short-term market fluctuations and lack rational analysis. Rational investors should have a comprehensive understanding of the market and not be affected by short-term rises or falls in long-term investment strategies.

Investment requires patience: The stock market is not a one-day effort, and it is impossible to expect huge profits in a short period of time. Long-term stable investment strategies can bring real returns. Investors need to have enough patience to stick to their investment plans.Investment Requires Research: To profit in the stock market, one must conduct in-depth research and understanding of the market. This includes the analysis and comprehension of a company's fundamentals, industry trends, market trends, and more. Only through thorough research can one identify the best investment opportunities.

Investment Requires Risk Diversification: Do not put all your eggs in one basket. Diversified investments can help us reduce risks and avoid significant losses due to mistakes in a particular investment.

Investment Requires Self-Reflection and Learning: As investors, we need to constantly reflect on our actions and decisions, learn from them, and continuously improve our investment strategies. At the same time, we must also keep learning new investment knowledge and skills to adapt to the ever-changing market environment.

In the past decade of China's stock market history, we have witnessed Mr. Zhang's growth and enlightenment. His story tells us that making profits in the Chinese stock market is not impossible; the key is to be rational, patient, good at learning, good at research, and good at diversifying risks. We hope his story can bring inspiration and hope to more retail investors, helping them go further, more steadily, and better on the road of investment.

A private equity teacher once told me: If you can grasp the essence of the relationship between volume and price, and make it a habit to review the market, then you have taken another step towards success!!!

Only through enduring the bitterness can one become superior! This is very practical for beginners. In the past, in order to master a knowledge point, I reviewed the market continuously for a week. It is not enough to just look at it once and feel that you have mastered it; this is wrong. Sometimes this feeling can lead to blind confidence and eventually fall into one's own misunderstanding.

Now many people learn a technique, hear others say it is very powerful, and do not review the market, but directly use it, which is not advisable. First of all, this is someone else's thing, which may not be suitable for oneself; secondly, to know how the technique is, one must review the market to find out, whether everyone agrees with what I say; finally, to be able to flexibly use a technique, one must review the market thousands of times to form a sense of the market, and then one can say that they have mastered the technique.

Be sure to hold on when encountering the "Four Crossings of the Chishui River"

Moving Average Theory is one of the most widely used technical indicators today. It helps traders confirm existing trends, judge upcoming trends, and identify overextended trends that are about to reverse. What are the buying opportunities for moving averages? Regarding the buying opportunities of moving averages, let's introduce the "Four Crossings of the Chishui River" strategy.

The "Four Crossings of the Chishui River" pattern is a bullish pattern. After a long-term decline in stock prices, a sudden factor causes a strong rebound, but it begins to fall back at the 2/3 point of the decline. After a period of bottom consolidation, the stock price once again challenges the previous rebound high point, and the stock price is once again blocked and falls back. After the stock price has gone through this process four times, the manipulator's collection, washing, and preparatory work before lifting have been completed. We call the high points formed by the stock price's four challenges the "Four Crossings of the Chishui River".The technical characteristics of "Crossing the Chishui River Four Times" are as follows:

1. This pattern generally occurs after a prolonged period of decline, when the stock price begins to form a bottom.

2. After a certain period of bottom consolidation, the stock price challenges the previous rebound high point, and this process is repeated, forming three to four high points.

3. Connect these high points to form a line. When the stock price breaks through this pressure line, it is accompanied by an increase in trading volume.

4. After breaking through this pressure line, the stock price may retest to check the strength of the support provided by this pressure line.

Practical points to note:

1. The "Crossing the Chishui River Four Times" pattern may not always precisely have four high points, but it is more likely to have four high points.

2. During the bottom-building process, the fluctuation range of the stock is significantly larger than the cumulative decline.

3. When the stock price breaks through the upper pressure line, it is accompanied by an increase in trading volume. After breaking through the pressure line, there may be a pullback to test the support line that the pressure line has transformed into, to see if the support is strong enough.4. After the formation of the "Four Crossings of the Chishui" pattern, it is generally accompanied by a significant upward momentum and space for growth. Even if the market has risen by 60%, investors should not easily sell their stocks. Moreover, more than 80% of the bull market trends start from this pattern.

Stock Selection Entry Points:

1. When investors see the stock price breaking through the upper resistance line and find that it is accompanied by an increase in volume, they should decisively follow and buy.

2. If the stock price breaks through the resistance line and then retreats to the support line, it presents a good entry point for re-entry.

A correct investment philosophy will give you wings on the path to success.

I. Holding and being content is better than pushing it further. It is better to buy stocks of companies with good performance and profitability, and hold them patiently; buying stocks that may continue to be profitable in the future is not as good as buying stocks that have already achieved continuous profitability and high dividend payouts. These stocks offer more guaranteed returns.

II. Sharpness and keenness cannot be preserved for a long time. Stocks that appear very sharp, active, and often hit the daily limit may not have a strong ability to continue to rise; holding such stocks, one should not take a long-term view, and should sell when they make a profit. This is the principle of "The Tortoise and the Hare". Hares are suitable for speculation, while tortoises are suitable for investment; although tortoises seem slow, they make money every day, and over ten years, the results can be quite impressive.

III. A house full of gold and jade cannot be guarded. The most important thing to look at in a company is whether the management team can manage their finances well. Companies that seem very profitable, if the management team spends money recklessly and invests indiscriminately, will quickly squander their wealth. Therefore, we will see that many companies that make money by luck, in the end, lose it all by their own strength; such companies, even if their performance is good, should not be invested in, because they cannot preserve their own position.

The closer you are to the essence of anything, the closer you are to the truth! Understand the essence of the stock market.1. The essence of the stock market lies in its uncertainty. Every day is a new day, an unknown day for stock traders. Wall Street has said that if one could see through the market trend for two days, they could become wealthy enough to rival a nation. Is there anyone who can see through the market trend for two days now? No, there isn't. Therefore, the essence of the stock market lies in its unpredictability! As a result, we need to have a deep respect for the stock market. Those who claim that the stock market is their ATM will surely be eliminated by it! From this, we can deduce that in the stock market, following becomes very important, so we should not make too many predictions!

2. For ultra-short-term traders, they make money by relying on market sentiment. Therefore, mastering the market's heart will lead to continuous victories. If one's heart is controlled by the market, failure will come immediately! Being able to read the market sentiment means having a preliminary understanding of the overall market situation! Only those who stand higher can see further and go further!

3. During a bear market, due to the lack of external capital entering, the funds remaining in the stock market are all existing funds competing. This will lead to a "this rises and that falls" phenomenon. When many people are optimistic and buy, there won't be so much capital to take over the next day. In the absence of an opposing side, a situation where many kill many will inevitably occur. Whoever comes out first will win. Therefore, it has created a phenomenon where only a few people can make money. When most people are optimistic, it's time to sell. When most people are fearful, they dare not buy. When they dare not buy, if you buy, the next day there will be many people who did not buy to be your opponents. You can then sell to them in line with the trend and profit from it!

4. Behind the stock market transactions are people operating. Therefore, understanding people's hearts has become extremely important. The more people who buy and sell, according to the characteristic that the herd effect has always existed in human society, it can be deduced that most people will become a mob. The human nature formed by these people is the emotional expression of the stock market. Human nature is as old as mountains, so Mr. Livermore said, "There is nothing new on Wall Street!" Being able to understand life can also understand the emotions of the stock market! And emotions can well guide the overall situation!

5. In the stock market, the method of selecting stocks is called "technique." In different market sentiment cycles, the technique will always fail sometimes. Therefore, different techniques should be used for different market cycles. There is no one-size-fits-all technique in the stock market. This once again emphasizes the importance of the overall situation. From the quantitative change of "technique" to qualitative change, that is the level of "Tao," which is the mind method. It can guide why you can make money with this move, what is the reason behind it, generally refers to the theory of "Tao."

Investing in stocks is the same as being a person, and there is no easy word. Human nature is the most difficult to overcome. Indeed, everyone knows the truth, but only those who can truly integrate knowledge and action can break free from the cage and truly open the door to wealth through stock investment.

At the time of trading, one should follow the principle of "seeing is believing, hearing is deceiving," and strive to achieve the level of seeing and doing. Smart people are good at learning from and understanding others' mistakes. After seeing, they can achieve a state of mind as if they have personally experienced it. There is no need to go through the real hardship of "learning from a setback" to achieve the deep understanding of "gaining wisdom." Whether it is life or career, even if it is at its peak, there will be a moment of decline. What is important is to always remember the ancient saying "When poor, take care of oneself; when rich, help the world" no matter what situation you are in.